Here are some very speculative reasons why Verizon might be a strong beneficiary of AI:
-
Verizon is already using Google-powered AI to do customer service. Verizon claims AI can help employees answer 95% of the customers questions.
-
Due to increase in data transmission caused by growing consumer/corporate use of AI, Verizon expects to double its network in next 5 years.
-
AI is helping Verizon prevent accidental line disruptions.
-
Verizon has 1,500 data points on each telephone number. Right now they are using that for offering personalized customer service and deals, which they claim has increased retention.
-
But imagine if Verizon also uses this data to power an advertising network.
-
Verizon Business can presumably also offer AI-powered services to clients. For example, increasing cybersecurity, or using AI dashcams to boost fleet safety.
To balance things out, here are some cons of Verizon via Morningstar:
-
As wireless and broadband services become increasingly essential for social inclusion, regulators might step in to set prices if Verizon's prices are too high.
-
Regulators could release more new spectrums, allowing easier entry of new competitors into the industry.
-
Large cable companies are deploying wi-fi networks to provide limited wireless coverage. New technology could enhance these efforts and make them viable competitors.
Leave a Reply